In parallel to resolving the refugee crisis, the financially desperate Greek government still has to realize a number of economic reforms in order to be provided with a new loan. Meanwhile, the International Monetary Fund asks Europe to provide Greece with major debt reliefs.

The IMF and European lenders have different opinions in regards to Greece’s financial outlook and the necessity to restructure debts. IMF notes that Greece’s dent has become unsustainable. This is because there was no sufficiently strict policy realized in the country in previous years. In addition, the country’s domestic macro economy and financial environment have become worse. IMF believes it will only bring Greece and Eurozone more problems to deal with. This is why Europe’s partners should carry out specific measures to provide debt reliefs, as noted by Coface Director in Latvia Arnis Blumfelds.

It is expected that Greece’s sate debt will reach its peak in the next couple of years, forming 200% of GDP. Nevertheless, Europe is in no particular hurry to discuss debt reliefs, saying that it is first necessary to adopt stricter fiscal measures. In order to accomplish budget goals and receive another part of the loan as part of the international loan programme, Greece has to introduce significant reforms that affect the pension system, PIT, VAT and public sector wages, says Blumfelds.

At the same time, the political situation in the country remains unstable. The left wing Greek government is committed to reduce the influence of the austerity programme and has only a small majority in the parliament.

Coface’s risk assessment for Greece’s business environment is currently ‘C’ – very high. Greece’s GDP growth is expected to be 0.1% in 2016.

Members of the European Parliament have overwhelmingly supported what has been negotiated upon in the joint EU-UK progress report in Brexit talks and have recommended Brussels to move on to phase two negotiations on the future relations of the parties.

The silent period – the time for Christmas wishes – has begun. Snow covers Tukums, and the city slowly becomes white. Everything is quiet at Pils ielā. The phone rings, interrupting a quiet moment of watching snowflakes fall under the light of a lantern. «You’re here for us, aren’t you?» BNN goes to interview manager of Merci Cafe Anija Rabkeviča (23) and cafe’s founder Rinalds Pluģis (22). They tell about their experience of ‘surviving’ in Latvia.

Latvian Transport Ministry’s developed development plan for the transit industry, which was presented to Saeima’s National Economy Committee this week, states that raising competitiveness in the country requires subsidizing railway cargo transports.

Only political discussions were held proposal on the merge between Latvijas Mobilais Telefons and Lattelecom, and it is good that this matter has been taken off the agenda, said LMT President Juris Binde in an interview to Rīta Panorāma programme of LNT.

In the Estonian capital, the result of a legal dispute between water utility company Tallinna Vesi and the Estonian Competition Authority is that consumers are considered to be able to claim tens of millions of euros in compensation for overcharged water tariffs that have been in place for a number of years.

It was decided at a meeting of representatives of Latvian Association of Regions (LAR) that the party will not work with For Latvia’s Development. The party has also decided to start in 13th Saeima elections with its own list of candidates.

Italy has declared a state of emergency in its natural gas sector as a large explosion at a major natural gas hub in Austria killed one person, injured at least 18 and is prone to affect supplies in central Europe.

«To maintain GDP growth rate, the government should address priority matters like prevention of mandatory procurement component costs and electricity price rise to reduce costs for both businesses and residents. It is very important for employers to have the energy policy closely tied with production, because processing industry is the main driving force behind development of Latvia’s national economy,» says Latvian Employers’ Confederation (LEC) Director General Līga Meņģelsone.

The clients of Irish low-fare airline Ryanair will face inconvenience before Christmas as pilots and crew announced industrial action seeking to achieve union recognition and better conditions in the company, which is criticised by unions that it fails to offer pilots the same pay and conditions as its rivals.

Money laundering activities and grey economy are in decline in Latvia. However, corruption in the country’s public sector and smuggling activities remain serious problems for the national economy, as noted in the report on unaudited economy, corruption in the public sector and money laundering activities in Latvia published by Latvian Chamber for Commerce and Industry on Tuesday, 12 December.

Former Georgian President, now opposition activist in Ukraine, Mikheil Saakashvili, has been released from arrest by a judge, who denied a request from prosecutors to subject him to house arrest, but the case against him continues.

Latvia’s Justice Minister Dzintars Rasnačs has met with his Macedonian colleague Bilen Saliji, who arrived in Latvia to sign the Memorandum for Cooperation between Latvian Justice Ministry and Macedonian Justice Ministry.

The majority or 65% of Latvian respondents mentioned that whenever they make travel arrangements, they try to avoid regions in which there is a high probability of terrorist attacks or natural catastrophes, according to the latest Latvia Tours Travel Index.

The only offer extended to the now former state secretary of Latvia’s Interior Affairs Ministry Ilze Pētersone-Godmane to help her stay in state administration was the offer to become a candidate for the most of head of Riga Eastern Clinical University Hospital, as reported by Latvijas Avīze.

«Latvia continues supporting the solution that can be achieved through direct talks between Israel and Palestine with compliance of interests of both sides and making Jerusalem the capital of both countries. The European Union has to remain a reliable partner for Israel and Palestine. We have to continue the open dialogue with both sides and ensure EU’s unity in the Middle East peace process,» says Latvian Foreign Affairs Ministry’s parliamentary secretary Zanda Kalniņa-Lukaševica.

Countryside tourism businesses are threatened by unfair competition and growing bureaucracy, as emphasized by Latvian Countryside Tourism Association Lauku ceļotājs after discussing this season’s results at four regional business seminars.

As Estonia seeks to relocate part of government agencies out of the capital Tallinn, Estonian government ministers have been reminded that by the middle of January an action plan is required from them on the relocation of the central offices of 13 Estonian state institutions.

The volume of exports continued growing in November, reaching EUR 1,070,600 at the end of the month and setting a new record for exports for one month’s time. This export index is the highest in the history of statistical records in Latvia, Finance Ministry stated in its report, commenting on data from the Central Statistical Bureau.

Governments of European Union member states are aware of torture and abuse of refugees and migrants in Libya, Amnesty International has stated, insisting that trying to reduce migration, the EU is actively financially supporting a «system of abuse and exploitation» on the Mediterranean coast of Libya.